Netflix says it is “highly confident” that it will receive and “running full speed” toward regulatory approval for its acquisition of Warner Bros. streaming and studio assets.
“This deal is pro consumer, pro innovation, pro worker, it’s pro creator, it’s pro growth, and our plans here are to work really closely with all the appropriate governments and regulators, but we’re really confident that we’re going to to get all the necessary approvals that we need,” Netflix co-CEO Ted Sarandos told analysts on Friday. “These two businesses are complementary, and they’re also loved businesses, which is really fantastic.”
When asked if they are concerned about another bid coming in and having to raise their offer, Sarandos added: “We are running full speed towards regulatory approval. We’re focused on getting the deal done. We’re not going to speculate on what comes after that. We’re full steam ahead.”
The deal, which is expected to close in the next 12 to 18 months, values Warner Bros. Discovery at $27.75 per share, implying a total equity value of approximately $72 billion and an enterprise value of approximately $82.7 billion.
The deal comes after WBD launched a strategic review of alternatives in October, citing “unsolicited interest” from multiple parties for all or part of its business.
In addition to continuing on with its planned split into Warner Bros. and Discovery Global, which is on track for completion in April, the company’s board considered separate transactions for the two companies or a deal for the entire combined company. WBD also considered an alternative separation structure that would enable a merger of Warner Bros. and spinoff of Discovery Global to its shareholders.
Netflix, Paramount and Comcast would enter a contentious bidding war, with Paramount submitting multiple bids for the entire company, while Netflix and Comcast submitted bids for the studio & streaming business. The bidding went for three rounds before Netflix and WBD entered exclusive talks.
“If we sound a little tired, it’s because we are. We have found this to be an incredibly rigorous and competitive process,” Sarandos added.
More to come…
The post Netflix ‘Highly Confident’ It Will Receive Regulatory Approval of $82.7 Billion Warner Bros. Deal: ‘We Are Running Full Speed’ appeared first on TheWrap.
